US STOCKS-Wall St dips as small-caps again weigh
* Russell 2000 approaches correction territory again
* J.C. Penney, Nordstrom soar after results
* Housing starts jump in April
* Indexes down: Dow 0.2 pct, S&P 0.3 pct, Nasdaq 0.5 pct (Updates to open)
By Ryan Vlastelica
NEW YORK, May 16 (Reuters) - U.S. stocks edged lower on Friday, with the Dow and S&P 500 on track for their third straight daily decline as small-cap stocks once again underperformed the market.
The Russell 2000 index of small companies briefly entered correction territory on Thursday, defined as a 10 percent decline from a recent high. It subsequently pulled back and is currently 9.8 percent below its high, suggesting that level is serving as support.
Still, the index is solidly under its 200-day moving average, a sign of weak momentum, and investors are worried that prolonged weakness in small names could be a precursor of broader losses. The Russell is down 0.5 percent on Friday.
"We're in the middle of a rolling sector correction, where some areas of the market are performing better than others," said Jerry Harris, president of asset management at Sterne Agee in Birmingham, Alabama, who noted that the S&P 500 hit an all-time record on Tuesday. Continuación...